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New Delhi: Canara Bank has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across all loan tenors, effective May 12, 2026, according to a BSE filing.

The revision is set to impact borrowers with floating rate loans linked to the MCLR benchmark, including home loans, auto loans and personal loans.

Canara bank BSE filing

Canara Bank’s revised MCLR rates

As per the latest revision, the overnight MCLR has been raised to 7.90% from 7.85%, and the one-month MCLR now stands at 7.95%, up from 7.90%. The one-year MCLR, the rate most commonly linked to retail loans, has been revised upward to 8.75% from 8.70%. The bank’s Repo Linked Lending Rate (RLLR) remains at 8%, effective March 12, 2026.

How it impacts your home, auto and personal loan EMIs

Borrowers with MCLR-linked floating rate loans may see their interest rates rise depending on their loan reset date and agreement terms. MCLR is the minimum rate below which banks are not permitted to lend, except in cases specifically allowed by the Reserve Bank of India. Any upward revision directly translates to higher EMIs for existing borrowers once their reset date arrives. The revised rates will also apply to all new loans, renewed credit facilities and borrowers who choose to switch to MCLR-linked rates on or after May 12, 2026.

How your fixed deposits get affected

For those looking to save, Canara Bank’s fixed deposit interest rates range from 3% to 6.5% for general citizens across tenures of 7 days to 10 years. Senior citizens get slightly better rates, ranging from 3% to 7%, with the highest rate applicable for a 555-day tenure.

Bank of Baroda keeps rates unchanged

Not all banks are following suit. Bank of Baroda has kept its MCLR unchanged, with all lending rates holding steady at previous levels, according to its BSE filing.